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Ren Protocol to Shut Down and Launch New Network With Millions at Risk

2 mins
Updated by Ryan Boltman
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In Brief

  • Ren protocol has over $35 million in Total Value locked, according to data from DefiLlama.
  • The assets, if not bridged back to native chains, are at risk of being lost forever anytime soon.
  • The users are frustrated with the sudden decision of the Ren Protocol.
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Ren Protocol, which had backing from Alameda Research to shut down, and the millions in Total Value locked are at risk of being lost forever.

Update Dec 22, 2022 (13:30UTC): According to sources working closely on the project, the project has roughly one week before the network freezes. While the total number is expected to decrease, it is unclear what will happen but the team say they will fight to keep the peg maintained as it looks to migrate to 2.0.

Yet again, millions of dollars are at risk due to the direct impact of the collapse of the Sam Bankman-Fried empire. Ren protocol announced that users’ must bridge their assets back to native chains, or they might risk losing their assets.

Ren 1.0 to Shut Down due to The Alameda Exposure

Ren Protocol, a platform that provides interoperability and liquidity between different blockchain platforms, was announced to speed up the upgrade to Ren2.0.

Alameda Research funded Ren Protocol in 2021; the platform now only has a runaway till Q4 2022. Due to this reason, the development team believes in shutting down Ren1.0 at the earliest.

Today the protocol posted an announcement on Twitter urging users to withdraw funds from the protocol ASAP or risk losing their funds. There is a frustrating sentiment amongst the community.

The Community Expresses Frustration as Millions in User Funds are at Risk

According to data from DefiLlama, the Ren Protocol has over $35 million in Total Value Locked (TVL), which consists of over $31 million in the Ethereum network. 

Ren protocol total value locked
Source: DefiLlama

As the Ren bridge doesn’t require users to submit their email id, social media is the only means through which the team can communicate this update. The community heavily criticized Ren stating that those who are not active on social media are getting “rug-pulled.” 

Some users question blockchain technology in general, stating that they never lost funds when banks upgraded their servers. At the same time, others doubt on decentralization of the Ren protocol for making such sudden decisions.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...